ReGen III Corp. V.GIII

Alternate Symbol(s): ISRJF

Energy Oil & Gas Refining & Marketing

ReGen III Corp. is a Canada-based cleantech company commercializing its ReGen, patented technology to recycle used motor oil (UMO) into high-value Group III base oils. The ReGen technology is designed to produce the highest quantity of high base lubricating oils of any re-refining process. Its ReGen technology, produces a 53% yield of Group III, which is a high-margin base oil used in the formulation of performance synthetic grade motor oils. The Company is also focused on developing its brownfield re-refinery in Texas City, Texas (Texas Facility). Its projects include Texas and Alberta. It is also engaged in Koch Project Solutions, LLC (KPS) to provide project execution management services up to turnkey delivery of the proposed Texas Facility. The Company is focused on building or enhancing UMO re-refineries and licensing its intellectual property to third parties around the world. Its first ReGen facility is in the site selection and negotiation phase in the United States Gulf Coast.

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ReGen III Corp. > Definitive agreement reached

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Comment by lscfaon Feb 03, 2022 3:30pm

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Post# 34394600

RE:RE:RE:RE:RE:Definitive agreement reached

Yeah after reading the NR again I see the 14.4% is on funds advanced, not project revenues. NR does not say if this 14.4% is in perpetuity.

	US refinery
Bpd	5600
Revenue $ mil	396.4
50% ebitda margin	198.2
14.4% on $75 mil	(10.8)
Adj. ebitda	187.4
Co’s 85.9% share	161.0
Co. cash exp	(10)
Co. ebitda	151.0
Diluted shs	122
ebitda/sh	$1.24
Multiple	12
Sh value	$14.85

SmilingDog wrote: That's not correct.

Scenario one (the incorrect one): 28.5% equity ownership = 28.5% x $250M of EBITDA = $71M of EBITDA allocated to PE partner

Scenario two (the correct one): 14% equity x $250M of EBITDA = $35M of EBITDA + $10.8M dividend payment (14.4% x $75M investment) = $46M allocated to PE partner

There's a very big difference between $71M and $46M. At a 10x valuation multiple to ReGen, $25M of EBITDA = $250M of EV value = more than it's entire market cap today.